4 ms·
Not quite on topic but I would like to share it because I'm curious (not sure what to expect, just testing the global mind): When I lived in the US I was emplo
by ItsMe000001 8y ago
Not quite on topic but I would like to share it because I'm curious (not sure what to expect, just testing the global mind):
When I lived in the US I was employed so I can't compare, but when I founded a small business together with a friend banks (yes, plural) were only willing to "Lend" us exactly the money we already had, and that is a general policy for them when "lending" to small new businesses. It means, we had about 100k - so if we gave them the 100k and put it into a no-withdrawals account they would lend us 100k. Okay.
Yes, I get it, "tax reasons". This is just silly. First, you have plenty to write off at the start anyway, second, if you are worrid about paying a lot of taxes it means you are making a lot of money. I actually don't mind paying taxes at all (I do mind the many fees many organizations want from my new company, from GEZ for public TV to IHK - none of which do anything for me, unlike the state as a whole, plus taxes are coupled with income, those many fees are not). The main point is that you only get the money that you already have anyway.
- brianwawok 8y agoRisk. Banks aren’t in the business of unsecured risky loans. VCs are. If you want an unsecured risky loan, talk to VCs.
- ItsMe000001 8y ago1) Risk isn't black/white but a continuum. 2) Banks ARE in the business of risk, very much so. What are you talking about??? They make risky investments all the time! They just prefer 200 million over 100k because they've become too big to care about anything but mega-projects.
- hef19898 8y agoWelcome to Germany... I thought for the majority of last year to try it and found my own company. Financing was the main reason I didn't, besides the fact that I reallsy suck at sales. Banks wanted basically everything I had to cover the initial purchasing of goods with the goods itself not being sufficient. Public funding, in the scope of increasing the number of young comapnies, fell short because my idea was not inovative enougj. Never mind the a start-up selling locally sourced vegetables via app was inovative enough for them... And I didn't want CV founding to gwt the initial cash flow issues solved. So here I am, employed again.
- maxxxxx 8y agoIf you suck at sales then financing is not your problem. There are plenty of successful companies in Germany.
- hef19898 8y agoWell, let's put that way. If I would have gotten some positive signs regarding financing I would have looked for some one for the sales part. I know, kind of backwarsa thinking. So being employed in the end turned out to be not such bad idea. At least I can say I tried, so no regrets from my side.
- maxxxxx 8y agoI am in the same position. I have tried entrepreneurship a few times but in the end it came down to me not being good at sales. I think hiring someone for sales doesn't work. Either do it yourself or partner with someone who can sell.
- hef19898 8y agoPartnering woupd have been the preferred way solution. Throwing your whole professional future in the ring requires a real level of trust, I just didn't trust the potential candidate enough... It feels good to be not alone in that situation, so!
- jotm 8y agoI know two successful business owners in Germany and one in Belgium and they all got their much needed initial capital from savings, family and people they knew. Millionaire Turkish real estate investor, doctors, other small business owners - not VCs, not loans, not credit. That seems really hard to come by in Europe (especially if you don't have prestigious education or extensive work experience), small exception for the UK. People don't really go into business if the idea has not been tested by someone else, and that's a shame, and one of the reasons why the US is so far ahead.